1. Workshop on Agriculture, Agri-Business and the Retail Sector in South-East Europe Nicos Papandreou

2. Agricultural inputs & production Primary & secondary processing Packaging & distribution Retail & Food Service Downstream Upstream EBRD’s agribusiness sector expertise We finance all stages of the food chain

3. Agribusiness & EBRD 27 bankers EUR 3.25 bn invested in 205 projects Growing annual commitments EBRD annual investments in Agribusiness (million €)

4. The Transition Period Before 1990, planned economy, no supply and demand, consumers had no choice and producers no incentives During transition: vertical disintegration, mafia steps in, no market transparency and no competition EBRD response: trying to promote wholesale markets as a way to concentrate supply and demand in a single space and promote fair competition

5. EBRD’s Wholesale Markets 25 wholesale markets in 11 countries Implemented 7 projects Mixed success rate

6. Wholesale Market Projects CompanySectorEBRDCountry Signing Date Yerevan WSM refurbish & new wholesale marketUSD 15 mArmeniaDec ‘95 Minsk WSM refurbishment of former vegetable baseUSD 6.5 mBelarusDec ‘93 Bulgaria WSM Wholesale & Assembly MarketUSD 10 mBulgariaAug ‘99 Croatia WSMWholesale MarketsUSD 16.5 mCroatiaDec ‘97 Budapest WSMExpansion & ModernisationUSD 6.4 mHungaryMar ‘94 Warsaw WSM Wholesale Market & Distribution ParkUSD 15.1 mPolandDec ‘94 Bucharest WSM Construction of Wholesale MarketUSD 25 mRomania

7. Conclusion: Mixed Response Financing is not a bottleneck Government policies have to follow Wholesale markets are only part of the solution Need for technical assistance This led to CEI Wholesale Market Foundation…

8. Strategic orientation Promote modern private distribution, faster and more effective Continue to finance downstream industry to support upstream agriculture

9. 9 EBRD example retail financing

10. 6 Agribusiness team and EBRD: Projects and Scope Extensive experience of working with the most demanding agribusiness and food FMCG companies across the Food Chain, multinationals and local leaders - many have more than one project with us (see small circles). 2 Intermarché

11. Some Examples – Getro Why Getro Successful local Entrepreneur with a good track record Good format for local needs Location location location Structure of Project €25m convertible debt facility Strengthening equity base of company and giving EBRD potential upside Fully flexible long term facility tranched

12. Some Examples – Cora Why Cora Good regional player with a strategy across a number of countries Good format for local needs Lots of experience /established models Deep Pockets Structure of Project €160m syndicated debt facility For hypermarket format Strengthening of Balance sheet of client Fully flexible Tranched facility

13. Conclusion on Retail Appropriate Format appropriate time Location, location, location Flexibility to respond to customer needs Long Term tranched facilities required to provide full flexibility to clients

14. Private sector Response: Investment waves 91 92 93 94 95 96 97 98 99 0 01 02 03 04 05 06 07 08 09 Retail 98-09: Migros Metro Others? Edible oil 99-04 : Yug Russi Sloboda Louis Dreyfus Others? Packaging 99- 07: PLM Huhtamaki Confectionery 91-99: Mars Nestle Cadbury Bolshevik Wrigleys Dirol Chupa Chups Beer 95-01: Baltika EFES SAB Sun-Interbrew Dairy 97-01 : Wimm-Bill-Dann Ehrmann Campina Danone

15. Conclusion on Strategy Still a long way to go Need to help suppliers Need to make sure fair competition Government regulations should be adapted Small suppliers might be left out